Vinamilk, Kido pull plug on bottled water joint venture
In this article (5)
The Vinamilk – Kido Beverage Joint Venture Company has announced its dissolution after just a year of doing business.
Vinamilk, the country’s largest dairy company, decided to end its joint venture with ice-cream producer Kido with effect from December 1 due to “certain changes in the development perspective of both parties.”
Kido gave a similar statement, elaborating that the unpredictable changes in the domestic market and global economy were also a factor.
Vibev was registered in March 2021, and started out with an investment of VND400 billion (US$16.3 million).
Vinamilk held a 51% share and Kido the rest.
Mai Kieu Lien, CEO of Vinamilk, had said then that the collaboration stemmed from the two companies seizing mutually beneficial opportunities.
Several months by the Covid pandemic had delayed its product launch, but the company had ambitious goals like maintaining its dominant share in the bottled water market and producing 150 million bottles annually (equating to sales of VND2 trillion) within five years.
Questions & Answers
Q.What was the initial investment made by the joint venture company?
What was the initial investment made by the joint venture company?
Vibev was registered with an initial investment of VND400 billion, which equates to US$16.3 million. This capital was put in at the time of its formation in March 2021.
Q.What were the stated reasons for the dissolution of the joint venture?
What were the stated reasons for the dissolution of the joint venture?
Vinamilk cited 'certain changes in the development perspective of both parties' as the reason for ending the venture. Kido also mentioned unpredictable changes in both the domestic market and the global economy as contributing factors.
Q.What were Vinamilk, Kido Beverage Joint Venture’s long-term sales targets?
What were Vinamilk, Kido Beverage Joint Venture’s long-term sales targets?
The company aimed for ambitious goals including maintaining a dominant share in the bottled water market. It planned to produce 150 million bottles annually, equating to sales of VND2 trillion, within five years.
Q.How long had the joint venture been in operation before its dissolution was announced?
How long had the joint venture been in operation before its dissolution was announced?
The joint venture company, Vibev, was registered in March 2021 and its dissolution was announced with effect from December 1. This means it was operating for just over a year.
Reader pulse
What does Vibev's dissolution signal?
20,102 votes so far